STAINLESS STEEL Y Strainer,SS Y Strainer WENZHOU DIYE VALVE&FITTINGS CO.,LTD , https://www.diye-valve.com
**Abstract**
Xindaxin: Announcement Regarding the Provision of Guarantee for Comprehensive Credit of Wholly-Owned Subsidiary Banks
Stock Code: 300080
Securities Abbreviation: Xinda New Materials
Announcement No.: 2013-091
Henan Xinda New Materials Co., Ltd. is a wholly-owned subsidiary bank, and it has issued an announcement regarding the provision of guarantees for the comprehensive credit of its fully-owned subsidiaries. The company assures that all disclosed information is accurate, complete, and free from false statements or omissions.
**Important Notes:**
The following companies are the beneficiaries of the guarantee:
- Xinjiang Xinluo Photovoltaic Materials Co., Ltd.
- Kaifeng Wansheng New Materials Co., Ltd.
- Pingdingshan Yicheng New Materials Co., Ltd.
**Guarantee Amounts:**
- For Xinjiang Xinluo Photovoltaic Materials Co., Ltd.: RMB 50 million; cumulative guarantee as of Q3 2013: RMB 30 million.
- For Kaifeng Wansheng New Materials Co., Ltd.: RMB 160 million; cumulative guarantee as of Q3 2013: RMB 60 million.
- For Pingdingshan Yicheng New Materials Co., Ltd.: RMB 165 million; cumulative guarantee as of Q3 2013: RMB 0.
No counter-guarantees are in place for these arrangements.
**Overview of the Guarantees:**
On October 24, 2013, the second board of directors of Henan Xinda New Materials Co., Ltd. approved the proposal to provide joint liability guarantees for the comprehensive credit of its wholly-owned subsidiaries. The resolution was passed unanimously with 11 votes in favor.
Due to business expansion, three subsidiaries have requested bank credits:
- Xinjiang Xinluo: RMB 50 million
- Kaifeng Wansheng: RMB 160 million
- Pingdingshan Yicheng: RMB 165 million
The company will provide a maximum joint liability guarantee of RMB 375 million, valid for one year. These guarantees do not require shareholder approval.
**Background of the Guarantors:**
Each subsidiary is fully owned by Henan Xinda New Materials Co., Ltd. Their financial details and operations are outlined below:
- **Xinjiang Xinluo Photovoltaic Materials Co., Ltd.**
Established on August 5, 2010, located in Kuitun City. Main business includes silicon carbide powder, refractories, and chemical products. In 2012, revenue was RMB 301 million, net profit RMB 5 million.
- **Kaifeng Wansheng New Materials Co., Ltd.**
Established on March 15, 2011, located in Kaifeng. Business involves cutting waste mortar, refractory materials, and solar components. In 2012, revenue was RMB 307 million, net profit RMB 11.7 million.
- **Pingdingshan Yicheng New Materials Co., Ltd.**
Established in 1996, located in Pingdingshan. Operations include silicon carbide processing, solar panel components, and energy solutions. In 2012, revenue was RMB 572 million, net profit RMB 27.3 million.
**Key Terms of the Guarantee:**
The company will provide a joint liability guarantee of up to RMB 375 million for the three subsidiaries, with a one-year validity period. This is intended to support their operational and project development needs.
**Board of Directors' Decision:**
The board believes that the guarantees are necessary to ensure the continued operation and growth of the subsidiaries. As they are fully owned, the risks are manageable and aligned with the company’s strategic interests.
**External Guarantees Summary:**
As of now, the company has no external guarantees for third parties. After this arrangement, total external guarantees to subsidiaries will amount to RMB 520 million, representing 18.68% of the company’s latest audited net assets. The actual guaranteed amount is RMB 90 million, or 3.23% of net assets. There are no overdue guarantees or legal disputes involved.
**Reference Documents:**
1. Resolution from the 29th Meeting of the Second Board of Directors.
2. Independent Director Opinions on the Proposal.
**Special Announcement**
Henan Xinda New Materials Co., Ltd.
Board of Directors
October 25, 2013